Chris Hong's TCI broke the record for profits among hedge funds. What did he capitalize on?

The hedge fund of British billionaire Chris Hohn, one of the most aggressive activist investors, set a new industry record for profitability in 2025. Also in the top 3 were Bridgewater Associates of investment guru Ray Dalio and one of the largest quant funds.

TCI Fund Management managed by Hon brought in $18.9 billion in profits for clients last year, surpassing Citadel's record of $16 billion set three years earlier, The Wall Street Journal (WSJ) reports with reference to the annual rating of Swiss investment company Edmond de Rothschild. Without adjusting for inflation, Hon left behind and became a prototype for the hero of the movie "Downgrade" John Paulson, who in 2007 earned $15 billion on a bet against the mortgage bubble in the United States.

TCI's large revenue for 2025 is partly due to the size of the hedge fund, the publication notes. According to Edmond de Rothschild, it managed $77.1 billion in assets at the end of last year. This is the third highest in the industry - only Millennium Management and Elliott Investment Management have more assets under management.

In the case of TCI, large and long-standing bets on aerospace companies have paid off handsomely. The London-based fund has a concentrated equity portfolio of just a few companies, Forbes notes. According to WSJ, citing public filings and its own sources, TCI owns large stakes in U.S. jet engine maker GE Aerospace, French aerospace equipment supplier Safran and European aircraft maker Airbus. Quotes for all three companies rose in 2025 as investors bet on the stocks to benefit from rising military spending.

Hon, the son of a Jamaican auto mechanic, founded TCI in 2003 and quickly earned a reputation as one of the most aggressive activist investors in the hedge fund industry. Two years after launching TCI, he forced Deutsche Borse to back out of its purchase of the London Stock Exchange, leading to a change in leadership of Germany's largest stock exchange.

In 2007, TCI led a high-profile campaign to split up Dutch bank ABN Amro, which was eventually sold to a consortium led by Royal Bank of Scotland. In 2008, Hohn's foundation won a proxy battle for board seats on railroad operator CSX. In 2022, TCI called on Google's parent company Alphabet to aggressively cut costs and headcount.

But Hong is also known for generating returns through long-term, large investments, the WSJ says. At the end of 2025, his portfolio included, among others, shares of Visa, Microsoft, Moody's and railroad operator Canadian Pacific Kansas City.

The second place in the ranking of the most highly profitable hedge funds in 2025 was taken by Ray Dalio's Bridgewater Associates with $15.6 billion net profit. The New York-based quantum (algorithmic) fund D.E. Shaw was next. Shaw, which earned $12.7 billion for its clients.

This article was AI-translated and verified by a human editor